- What Is Management?
- The History of Management
- The Importance of Business Management
- Fundamentals of Business Management
- The Nature of Business Management
- Management Functions
- Principles of Management
- Categories of Management Skills
- Types of Management
- Types of Management Styles
- Business Management Tools
- Bottom Line
Note: This guide will be updated once a year. Therefore, the latest updates, as well as helpful information, will be included.
Business is a way more complex term that people assume. There are millions of little things that come with it, most of which are generally neglected and not mentioned at all.
These underlying tones of business make every brand and company what it is.
Understanding the generic business functions and structures will help you comprehend how are those applied to any organization. These fundamentals mention Organizational Design, People Management, Human Resources, Micro and Macro-Economics, Financial Management, Marketing, Global Trends, Sales Strategies, Quality Control, Fulfilment, and Production. According to this, management is, in fact, a huge part of every organization worldwide, and frankly, without it, nothing can survive.
Failing to do proper management of every aspect of the organization is lethal for businesses. That is why today I am going to talk about this core element of any system, its importance and how to be successful at this activity.
What Is Management?
Traditionally, management as a term refers to activities that involve people and divide them into four major functions: organizing, planning, coordinating resources, and leading.
According to a more general definition “Management is the administration of every organization, whether it is a government body, a business, or a non-profit organization”.
Since we are going to talk about business management, take this definition as management being an administration of every business that includes activities associated with running a company, leading, monitoring, controlling, planning, and organizing.
I know this is far too general and it can mean a lot of things, thus it is important to break this definition down to its basic components.
But first, let’s start from the beginning!
The History of Management
Regarding the question when did management first appear, not many people can really get on the same page.
For all we know, it could have first appeared during ancient times, more specifically ancient Egypt and the building of the pyramids. A lot of people believe that management techniques are detected during these times, which is not far from the truth. It is true that the workforce was obligated to listen to the slave-owners, but throughout centuries the owners faced issues of systematic management.
Therefore, the need for management tools appeared and so did the Hindu numerals, the hieratic numerals, and the codification of keeping double-entry books. They quickly spread and these tools allowed ancient people to keep track thus easily control and plan activities.
These types of assessments may have not to be recognized as a particular activity that we will go on to know as management today, but the people were practicing it continually. Ever since then, the importance of good planning and control was recognized, so it took the world by storm.
The rest of it is history.
The Importance of Business Management
Believe it or not, management is an integral part of nearly any process in our lives.
You manage your time on a daily basis, you manage your knowledge, money, resources, etc. These are just simple examples of how much every daily activity requires proper management. If you do not become a master of your own time, you will barely have time for anything important. If you do not learn how to manage your money, you will probably lack money every month despite the amount of your salary. Proper management is crucial, and the same applies to business too.
The main reason why management is important for business would simple — Business owners cannot do everything themselves.
The thing with business management always depends on the ability of the manager as a person who should lead all the others. But, let’s leave this for now, as I am going to talk about the manager’s necessary characteristics later in the text.
In true sense, efficient management involves organizing and directing resources as well as people under the influence of one person, to ensure better productivity, coordination, and output, regardless of the industry and field. It does not matter if there is a whole organization or a singular person managing the activities, the general impact of good management is always the same.
There are some key specks that make management as important to any process as it is.
Let’s take a look at them:
#1 Helps Achieving Group Goals
Management helps to achieve group goals because it puts in order the factors of production, organizes and assembles the resources in a very effective manner. Thanks to good management, the efforts of a group are put towards the achievement of goals the group has previously determined. There would be no waste of time, effort, and money if the objective of the organization is clearly defined.
Management converts the disorganized resources of machines, humans, and money into a useful and organized enterprise. Such resources get directed, controlled, and coordinated in a manner that this exact enterprise work towards the accomplishment of set goals.
#2 Reduces the Wastage
As I just mentioned, when the resources of one company are successfully managed the wastage is immediately reduced. This allows companies to enter a state known in the business world as ‘resource optimization’.
If you do not know what resource optimization is, it basically means using your resources the best and the most you possibly can. If you do so, you will not only make profits from outputs, but your company will also profit from the better and optimum use of the inputs.
Such proper utilization of reduced wastage and the resources will help you prevent exploitation of the resources and underemployment. Those are two things you do not want as a business owner.
#3 Establishes Sound Organization
One of the management’s focuses is establishing a sound organizational structure.
But, what does this mean?
Using simplest words possible — having a good structure means everybody knowing and respecting their place within the organization.
Due to management, this is completely possible because management establishes effective responsibility and authority relationships. As a result, everyone knows who is accountable to whom, who are superiors, who gives instructions to whom, and who are the subordinates.
With good management, those in control are able to fill up different positions with the right people with the right skillset, qualification, and training.
This type of structure is more than necessary if the business owners want a flawless work. In this scenario, every person who works in a company knows their duties, rights, subordinates, and superiors.
This is the only way for the team as well as the company to grow while heaving a healthy working culture. The less complex and confusing the relationships within the organization are, the better for the company.
#4 Boosts Stability
Every company should function in such a fashion that external turbulences of the market do not jeopardize the overall work.
In cases like this, the company has to make efficient changes without hurting the workers or the stand of the company too much. Now, the thing is — if proper management lacks, this is nowhere near possible. If not, then the company and those in control will be able to successfully adapt to the changes while maintaining stability. Proper management helps in surviving cruel market conditions and rapid growths.
#5 Increases Quantity and Quality
Lastly, this is a wrap for all the benefits mentioned before. Having good business management will keep your workers happy, and as long as they are happy they are going to do their job the best way possible. Further, motivated, enthusiastic, and driven employees maximize productivity. The happy workers provide a successful functioning of the company that additionally reduces the costs.
This leaves us at the equation where you have both increased, the quality and the quantity of your output. This development just adds to the company’s growth and beating the competition.
Therefore, we can safely conclude that good management is crucial for the survival of a company as well as the length of its lifespan.
Fundamentals of Business Management
Like any other aspect of the business, management also has its fundamentals that make the field what it is.
So, here are the six fundamentals of business management you should know about.
One of the greatest assets of every company is the people who work for that company. How happy, motivated, and inspired the employees are, the bigger success the company will have. When it comes to human resources, it is absolutely necessary to learn the key to good communication and leadership. This type of management is called People Management or Human Resources.
There are many critical things for every business, one of which is not making sure the production meets the demand. When this occurs, it means the management operations are not done properly, which can ultimately be deadly for the business.
This management fundamental includes productivity analysis and improvement, capacity planning, the concept of lean management, and quality assurance. This type of management is also known as Operations Management.
As we all already know, finances are extremely important for any organization and business.
Therefore, it is important to put an accent on the accounting of any structure, because otherwise, it will be a chaos that results with a loss of money and eventually, the death of the organization.
The strategy is an integral part of any business because it covers all the aspect of placing the product on the market, thinking of ways to prevent failure, managing risks, providing the business with necessities and much more. This type of management is called Strategic Management, and it revolves around developing business strategies that include identifying ways for the business to grow as well as analyzing the competition.
Coming back to the money part of the business, the finances of every business should be always well maintained and controlled.
Smart financial decision-making and planning create value for the organization and ensures the future growth of the business. This type of management often goes by the term Corporate Finance.
Out of all six fundamentals of business management, you are probably most familiar with this one, aren’t you?
Marketing management is way more than a simple promotion of service or a product. It goes deeper than that as it requires identification and interaction with the customers as well as the potential customers, staying up to date with all of the marketing trends, positioning the product, proper targeting, and differentiation.
Marketing Management today is a whole field, which is extremely large and more complex than it seems.
The Nature of Business Management
The true nature of management mentions a number of characteristics that make management what it is. Here, we are looking at all the features that management includes in the processes it covers.
Since the nature of management can be described with diverse adjectives, I am not going to waste any time and jump right into the list.
The first characteristic I want to talk about is the dynamic nature of management. As an activity, management is lively and active just because it is dealing with the same kind of influences from outside. Because all of the companies go through changes and adaptations, the management has to be dynamic and flexible in order to provide the company with what it needs.
Not only the companies always face the risk of changing, but also a lot of management techniques are changing over a period of time. This is totally okay because this way it grows and further advances itself, perfectly meeting the needs of those who apply it.
Everywhere there is a human activity, there is management. It exists everywhere in this world, regardless of culture, language or religion. It is universal and follows the same principles for all people.
Management exists alongside the organization it is applied in. In its nature, it is a never-ending process. This means that as long as one structure exists, management will exist parallelly.
Management is a multidisciplinary activity because it draws concepts and knowledge from multiple different streams. These streams include fields such as economics, sociology, statistics, psychology, and more. The ideas and concepts management uses are linked to all these various disciplines, and it uses for the good of any organization.
#5 Group Activity
Management is an essential part of any group activity. One group of people has no chance of working successfully together if they are not accompanied by good management. If there is no proper management of the people’s activities and duties, the group will not be able to finish the project that they are working on. Management is vital if a group of people has the same intention of achieving a specific goal.
As previously covered, management is the perfect tool for achieving pre-determined goals.
Whether these objectives are social, structural or economic, good management helps the company achieves that.
There is one simple rule that always comes with management — it cannot perform if an authority is absent. What is meant by authority, is the power of a person or group of people to organize others to work systematically. If this is lacking, then management cannot happen. The responsibility, as well as the authority, depends upon the manager’s position within an organization.
It is not unusual to find people considering management as an art. If you ask me, I do think that it is an artistic activity because it requires knowledge, skills, creativity, and experience to make it good. Not everybody can be a good manager nor every manager is good. And that is where the art lies, whether you are born with the skills and the drive, or you simply are not.
If you search the internet, you will find that most of the people are divided on this one. Some of them believe management covers four major functions, while others believe there are five.
The four-function believers exclude the coordination part of management, something that the five-function believers do not fail to mention.
Since I believe coordination is a core element of management, I must say I support Henri Fayol’s administrative theory of the Five Functions of Management.
According to Henry Fayol, this management function is the hardest one out of all five.
Planning is looking ahead and drawing a good plan of action that will follow you while you pursue your set goals.
Planning includes choosing a specific task, determining how the task will be performed, outlining important activities that must take place, and indicating a date when the activities should be taken as well as the task finished.
The function of planning requires active participation in the process by the whole organization.
Planning must be linked to time and implementation, therefore it must be coordinated on every single level of the organization. This process also takes the flexibility of the workforce and the available resources into consideration.
Some people neglect the power of planning and that is their biggest mistake. Everything begins with a plan, thus management is no exception.
Organizing is when you create a mechanism to put your plans into actions.
Although it may sound obvious, it is true- One organization can function properly only if it is well-organized. The term is self-explanatory as there is no other way for a chaotic entity to be called an organization.
For one organization to be run smoothly there must be raw materials, staff, and sufficient capital to be organized in order for a good working structure to be built.
Organizing, as an activity, is needed in every planning stage because it is crucial for everything to follow its exact order.
It is extremely important to establish an organizational structure with a good function division. With the increased number of functions within the organization, the company expands vertically as well as horizontally.
Because people have the need to be given work assignments they have to complete as well as know who they are accountable to, organizing requires a type of leadership. When everyone is systematized the organization can grow perfectly.
Commanding refers to that part of management when the one organizing the others gives them appropriate orders. When the employees are given specific instructions, there are more likely to respect their duties and get the work done flawlessly.
Here, it is important for the organizer to have integrity and to be a respected team member.
Without such characteristics, the scenario would be as if the organizer did not exist and the employees would not know their positions and responsibilities, thus the work will not be done correctly.
#4 Coordinating/ Influencing
This next function, you can find under both terms “Coordinating” and “Influencing”. The reason why this is the case is that both stand for quite the same thing.
Coordinating means harmonizing activities so that the organization can have a better function. This harmonization can only be done by influencing others, motivating and disciplining them. Therefore, you can refer to this activity as coordinating or influencing, either way, you will not be wrong.
The person who coordinates or influences others should also be a respected team member and a good leader. The purpose of influencing and coordinating others is to increase overall productivity. And, the productivity there is, the more the team works towards the fulfillment of the goals.
As the last but not least important function of management, controlling includes verifying whether the actual execution is being done accordingly to the plans. If there is no control, the work is less likely to be done in accordance with pre-made plans, therefore it is more likely not to achieve the predetermined goals.
The controlling is a crucial management function as it sets norms and standards of performance beforehand.
Because of the control, the employees know exactly what is expected of them to accomplish.
The controlling helps measure the actual performance as well as the effectiveness of the executions accordingly to the standards and norms. It includes periodical evaluations, reviews and monitoring of the performance so that conclusions can be made.
Thanks to the controlling part of management, the employees and the ones in charge can easily find gaps where they are not supposed to be and correct the mistakes. The control allows bringing the execution on a level that matches the plans and the standards. This is the way for the group goals to be achieved.
Principles of Management
Identical to the management functions, the principles of management I will now talk about are recognized as such by Henri Fayol.
Thanks to Fayol and scientists similar to him, we are today able to understand the underlying factors for successful management. He has comprehensively described these principles management is led by in his book “General and Industrial Management”.
After years of study and many analyses and observations, Henri Fayol was able to conclude there are 14 different principles of management.
#1 Division of Work
Shortly explained, the division of work means specialization. According to Henry Fayol, it is vital for the employees to be put in areas they are specialized in so they can reach their maximum potential.
#2 Authority and Responsibility
In order for the tasks to be done, the manager has to have an authority to give orders to the other team members. Reasonably, where there is authority there is responsibility.
The authority principle comes with the power of the manager to give orders the employees will respect while the responsibility principle comes with the ability of the manager to effectively control the performance of the subordinates.
These two characteristics go hand-in-hand, as one cannot survive without the other.
This principle goes both ways.
Not only discipline requires respect for orders that are given from the managers but it also requires good managers at all levels. Both sides of the relationship should follow a good discipline in order to have a healthy working culture. According to Henry Fayol, the discipline is essential and often it is a part of the core values of mission and vision of one company.
#4 Unity of Command
The fourth principle of the 14 principles of management is about receiving orders from one manager only.
This principle states that the employees should be accountable to one manager because otherwise, it might lead to confusion in orders as well as a conflict between the employees and the managers, and the managers themselves.
#5 Unity of Direction
This regulation is about unity and focus.
As Henry Fayol says, the unity of direction, as a principle, implies that each set of activities that already have goals must have one plan and one head. To be able to distinguish the unity of direction apart from the unity of command, you should perceive this one as being related to the personnel functioning, not the managers’.
#6 Subordination of Individual Interest
Within an organization, there are all types of interests.
This principle indicates that the interests of the personnel are subordinated to the interests of the organization. Every company has to have the focus put on the organizational goals not the ones of the individuals. Including the managers, this standard is applied to every level of the organization.
#7 Remuneration of Personnel
This principle focuses on payments.
Henri Feyol believes that the remuneration should always be fair and it should be done in a way that satisfies both the employer and the employee. It is all about rewarding the efforts that have been made with monetary compensation and non-monetary rewards such as compliments, credits, and more responsibilities.
This is vital for every organization if the aim is to have happy, productive, and motivated employees.
The centralization implies the decision making authority’s concentration at the top of the management structure. Here, the executive board is placed.
Sharing decision-making processes to lower levels, such as managers, is known as decentralization. In this sense, Henri Fayol indicates that a good organization and structure can be achieved if there is a balance in these two specks.
#9 Scalar Chain
This principle can be best described if the scalar chain is perceived as an authority line. Imagine a line, starting from the highest point where there are the superiors, ending with the lowest ranks of people within one organization. According to this management principle of hierarchy, there should always be a clear line between the authorities within an organization.
Breaking this principle into social and material order, Fayol thinks of this principle as a simple edge for everything. As a management rule, the order means a specific arrangement of the persons, things, and tasks in every organizational structure.
In simple words, this principle is about kindness.
Just because the employees are subordinates to the managers, does not mean the managers are entitled to treat the employees badly. According to Fayol, all of the employees must be treated equally and kindly. They have to be in the right place within the organization, doing the right things and be respected by their superiors.
#12 Stability of Tenure of Personnel
Another principle of balance, this rule represents the managing and the deployment of the personnel in a way that a balance with the service is established. The whole point of management is minimizing the turnover of employees and assigning everyone on the right projects and positions. Finding that instability inside the structure is both the effect and the cause of bad management.
Fayol’s 13th principle is the ability of the employees to express their ideas.
According to him, such a principle encourages involvement and interest which additionally creates value for the organization. The more the employees are interested and involved, the better it is for the company, so every company should strive to boost the initiative of the team members.
#14 Esprit De Corps
Lastly but importantly, this principle means the union within the organization is in fact, its biggest strength. Here, Fayol puts an accent on the importance of good communication as well as teamwork if the group desire to achieve goals.
Categories of Management Skills
Good management skills are essential for the well-being of any organization. Without such skills, one company will be prevented from achieving its goals.
I think that by now you should have grasped the idea of management and how important it actually is for all organizational structures.
Now, when it comes to management skills, the truth is — not everyone has them. Not everyone is born nor can be a leader, and we all know that management and leadership go hand-in-hand.
In case one company fails to integrate a manager role inside the basic structure, issues and failure are bound to happen.
Similar to every other skillset, the management skills can be found in three major categories, that later divide into specific skills and abilities.
Category no.1: Technical Skills
As the name itself explains, this category of skills includes abilities and knowledge of the manager to use different kinds of techniques when performing specific tasks. These skills are generally very practical and often are related to information technology, mechanical, scientific, and mathematical tasks.
Not only these skills involve operating different software, machines, and production tools, but it also involves abilities to design products and services, boost sales, as well as market the designed products and services.
The list of the top and widely known technical skills includes:
- Big Data Analysis (compiling statistics, modeling, modifications, algorithms, analytical skills, database management, data mining, statistical analysis, quantitive reports, etc).
- Project Management (operations, engineering, budget planning, quality control, performance review, task delegation, quality insurance, task management, scheduling, etc).
- Social Media Experience (blogging, SEO, networking, digital media, web analytics, social media platforms, digital photography, etc).
- Programming and Coding (applications, design, hardware, implementation, coding, computing, certifications, languages, development, information technology, customer support, maintenance, new technologies, operating systems, programming, software, storage, solution delivery, training, usability, testing, tools, servers, etc)
* Technical Writing (research, email, client relations, subject matter experts (SMEs), requirements gathering, technical documentation).
- Technical Writing (research, email, client relations, subject matter experts (SMEs), requirements gathering, technical documentation).
Category no.2: Conceptual Skills
The conceptual skillset represents the ability and the knowledge of the manager for abstract thinking. This means that the manager should be able to see the whole through diagnosis and analysis of different states.
The manager should never stop formulating ideas and create solutions to the company’s problems. This skill helps the manager to predict the hurdles effectively and prepare to face the difficulties in the best way possible.
For the top managers, the conceptual skills are vital, but for the mid-level managers, they are not so much of a necessity. The first-level managers are not required to possess conceptual skills. The higher the rank of the manager the more important these skills are for the position.
The conceptual skills are listed in five groups, such as:
- Analyze (analyze and diagnose complex situations, diagnose problems within the company, examine complex issues, etc).
- Communication (effectively communicate strategy, presentation, verbal communication, etc).
- Creative Thinking (creative thinking, abstract thinking, critical thinking, broad thinking, formulate ideas, formulate processes, implement thinking, innovation, intuitive thinking, logical thinking, predict the future of the business, visualize the company as a whole, strategic thinking, etc).
- Leadership ( management, motivation, multitasking, task direction, task implementation, vision, team building, stability, recognize opportunities for improvement, persuasive, etc).
- Problem Solving ( execute solutions, prioritization, resolve industry problems, formulate an effective course of action, etc).
Category no.3: Human or Interpersonal Skills
The final category of management skills is the set of human or interpersonal skills which refer to the ability of the manager/s to work, relate and interact with people effectively.
This skill is what makes the managers who they are. You will never find a good manager who does not know how to manage and work with other people. You will also never find a manager who is successful at what they do yet do not have patience or respect for the employees and their time.
The interpersonal skills enable the managers to motivate the employees so that they can bring better results as well as make use of the human potential.
These human skills are needed for almost any position and any job that deals with other people because no company can work successfully if there are misunderstanding and miscommunication inside the structure.
The top interpersonal skills include:
- Communication (nonverbal communication, verbal communication, and public speaking).
- Empathy (respect, patience, kindness, caring, diplomacy, diversity, sensitivity, compassion, helping others, sympathy, etc).
- Conflict Management ( counseling, conflict resolution, problem-solving, mediating, and constructive criticism).
- Listening (active listening and inquiry)
- Leadership (motivation, management, instructing, encouraging, positive reinforcement, inspiring trust, mentoring, etc).
- Negotiation (persuasiveness and the ability to negotiate with others).
- Teamwork (team building, collaboration, teamwork, and group facilitating).
- Positive Attitude (networking, humor, behavioral, friendly, developing rapport, social, etc).
Types of Management
I better warn you, you will be surprised.
When it comes to the types of management, there are plenty of them. I mean, a lot. The process of managing has many faces, therefore it has many styles and types.
First, let’s talk about the management types and the huge variety of them. I have previously mentioned or covered some of them, but since this topic was not touched as a whole, I represent you the most common types of management.
#1 Marketing Management
This is one of the management types we have already talked about, but there is no harm in repeating.
Marketing management is the process of planning and developing strategies for services and products.
This management kind also covers coming up with effective ways for advertising, sales, and promotions, all with the purpose of reaching to the desired segment of customers.
#2 Human Resources Management
Human resources or HR is that part of a business that involves attracting, hiring, training, compensating, rewarding and managing the employees and their performance. This type of management plays a crucial role regardless of the organization or the industry.
It is vital for overseeing and forming the culture of the organization, and this type of management is implemented in every company.
#3 Sales Management
This type of management is a discipline which has its focus put on the application of the sales techniques.
Sales management also focuses on managing sales operations in one organization.
This is a crucial function because the main purpose of any business is to sell the products or services the company has created, and profit off of those sales.
The sales management covers managing the sales territories, accounts, and teams.
#4 Strategic Management
In the field of management, strategic management is the part that involves implementation as well as the formulation of the main goals of the organization and the initiatives that have to be taken.
This type of management looks at the overall strategy of the company and makes sure the execution of the plans matches the objectives.
Without strategic management, one structure has no way of growing and advancing.
#5 Public Relations (PR)
As a strategic communication process, public relations builds mutually beneficial relationships between one company and its publics.
The name explains the role of this type of management. We can easily conclude the public relations is basically management of the communication between the organization and the public.
The public relations management should always be done in a way that pleases both sides of the relationship. Every company aims to have a good relationship with the public. In this sense, this type of management is extremely important.
#6 Supply Chain Management
Simply put, the supply chain management is the management of the process of moving the service or product from the supplier to the customer.
In commerce, this type of management is essential as it involves managing the flow of products and services as well as the storage and movement of materials, finished goods, and work-in-progress inventory.
This process begins with the supplier or the one who creates the product or service, and the end point is the customer.
The photo below is on the German language, but nonetheless, you will be able to understand the whole concept just by looking at it. It perfectly delivers the message of what supply chain management actually is.
#7 Operations Management
Operations management is the specific area of management that is focused on controlling and designing the process of redesigning and production of business operations in the production of services and goods.
This may sound confusing, so if you have troubles understanding look at operations management as management of the services and goods’ production.
This type of management is concerned with every operation’s management beginning from manufacturing management all the way up to retail management.
#8 Financial and Accounting Management
It is clear that this type of management revolves around money and finances in general.
The financial management puts the focus on the rations, debts and the equities. This part of the management field is useful for distribution of dividend, portfolio management, capital raising, etc.
It includes the management of all the financial and accounting processes as well as teams.
#9 Procurement Management
Procurement management is a form of management that manages the acquisition of goods and services from a different organization.
This management is known to help the organization to save both, time and money when purchasing products or services from external sources.
It has many advantages and it is widely used by any company that makes purchases from different firms.
#10 Engineering Management
Engineering management is the application of the management’s practice to the engineering’s practice. It is a specialized form of management that is required for a successful lead of engineering or technical projects and personnel.
The term can be used for describing either project management or functional management.
Typically, the engineering management requires experience and training in both the specific management disciplines as well as the general ones, which will later be used by the team that is to be managed.
#11 Project Management
This type of management is the practice of initiating, planning, controlling, executing, and closing the team’s work in a way to achieve specific goals.
The project management takes care to meet particular success criteria at a specified time in the future.
The main challenge of project management is to achieve the goals of the project within the constraints that are given.
#12 Risk Management
As a discipline, risk management is concerned with identifying, assessing, and controlling the chance that the processes and objectives will have negative consequences.
Not only it includes identification of the risks but also prioritization of the risks followed by economical and coordinated resource application to minimize, control, and monitor the impact or the probability of the upcoming events.
Without risk management, one organization will not be able to recognize either the risks or the opportunities to minimize the damage of the risks. Therefore, is such discipline is not implied, a company is bound to fail.
#13 Information Technology Management
Information technology management is also known as IT is a discipline whereby all the resources of information technology of one company are managed accordingly to the priorities and the needs of the company.
The IT management covers advising and controlling the technology teams who run the necessary technology processes of the organization.
#14 Quality Management
Quality management is the type of management that ensures that the organization, its products or service is consistent.
The quality management has four main components and those are quality planning, quality assurance, quality control, and quality improvement.
Not only this management form is focused on the quality of all these components, but it also focuses on achieving the desired quality.
#15 Innovation Management
Innovation management is a combination of change management and the management of all the innovation processes.
This type of management refers to business process innovation, organizational innovation, and product innovation.
Innovation management includes processes such as research, development, and strategy.
It is accepted in almost every organization.
#16 Change Management
This type of management is a collective term for all approaches to prepare and support teams and individuals for making a change in the organization. The change management also includes controlled identification and implementation of the changes that are required with a computer system.
Because of the fact that every company faces business changes here and there, this type of management is vital for the survival of any organization.
By implementing this management form, the company will be able to make smooth transitions and easily adapt to the changes.
#17 R&D Management
The research & development management, or in short R&D management is the discipline of leading and designing such processes and managing research & development organizations.
The R&D management ensures a smooth transfer of technology and new know-how to other departments and groups involved in innovation.
This form of management helps better organizing and managing all of the processes related to research and development, as well as the teams doing the work.
#18 Design Management
As the term explains, design management is the organization of all the design processes such as design for a new product or service.
It is a field of inquiry that uses strategy management, design management, supply chain techniques, and project management with the purpose of controlling a creative process.
The main purpose of why design management actually exists is to help build a structure and organization for designing needs.
#19 Program Management
As a form of management, it is also known as programme management.
Program management is the process of managing several projects that are usually related, often with the intention of advancing the performance of the organization.
This being said means that program management is the management of an ongoing projects’ portfolio.
#20 Knowledge Management
Knowledge management refers to a process of creating, using, sharing and managing the information and the knowledge within an organization.
This type of management includes making the best use of knowledge with the intent of achieving organizational objectives. This makes the knowledge management a multidisciplinary approach of accomplishing the goals one company has set.
Knowledge management enables the creation, identification, distribution, use, and representation of knowledge.
In a world that is driven by knowledge, this is becoming one of the most vital types of management.
#21 Facility Management
As its name says, the facility management is a discipline that includes the management of the facilities such as data centers and offices.
This form of management effectively delivers support for the served organizations.
Every company has facility management since it is a needed professional discipline that provides maintenance where it is needed.
Types of Management Styles
Even though the management styles might sound related and similar to the management types, they are two very different parts of the management field.
What is the management style?
In simple terms, the management style is the fashion in which a manager plans and organizes the work efforts, the people and the resources within an organization.
This leads us to the fact that there are multiple management styles since different types of managers apply different approaches.
When it comes to the exact number of how many management styles there truly are, the majority of people believe there are three widely agreed-upon. However, in the business world, this is often not enough to categorize the business people. That is why I also, along with some experts, believe there are three management styles.
I am curious to see which style of managing will resonate the most with you.
As its name suggests, a democratic leader is the one who looks for consensus from their team and is very open to their opinions. Democratic managers offer the team members to engage in the decision making process. The final conclusions are made upon the opinion of the majority of employees. The Democratic leaders are approachable and open and lead to the collaborative making of decisions. The characteristics of this management style are that a democratic manager emphasizes “We” rather than “I”, and is open for constructive criticism.
While this type of management can be the most effective management style, it has also been proven to be inefficient for larger organizations, at times.
Completely opposite than the democratic managers, the autocratic managers make decisions that are based solely on their opinion rather than the opinions and the input of subordinates. This management style allows a faster decision making but also has the potential to drive the employees further from that organization due to the lack of their importance.
The characteristics of this management style are contrary to the democratic management’s features since the leadership is often run through orders, threats, demands, and punishments. The authoritarian manager also practices emphasizing “I” instead of “We”.
If the autocratic management style is used for extended periods, it can lead to high turnover. However, sometimes, for example in times of crisis, such management is acceptable and even recommended.
Although this management style allows discussion between the leader and the other team members about an important decision, it is essentially dictatorial. The consultative manager consults with the team members but in the end, make the final decisions accordingly their opinion and beliefs.
As a management style, the consultative style is good because it leads to employees’ loyalty towards the leader because they are included in the decision-making processes.
Often called delegative, the Leisez-faire manager does not hover. This management style consists of constant checks with the other team members and provided guidance. It is opposite than autocratic but not very similar to the democratic management style. In such cases, the Leisez-faire manager is considered a mentor rather than a leader.
Some of the most recognizable characteristics of this style of management are the fact that the employees carry the responsibility of the goals, there is no criticism, and the group and the delegated tasks are emphasized.
While this type of organizing the work within an organization can work out well, it usually tends not to be very productive.
As a style of management, the MBWA is not often mentioned even though I believe is very important. The MBWA stands for “Management By Walking Around”, which has been proven to work very efficiently within large organizations. The MBWA managers have a duty of constantly walking around and gathering information so they can stop problems and make decisions. This management style makes the managers who practice it counselors, not directors.
The MBWA is among the most respected and well-received management styles by all team members.
The persuasive managers are the ones who make decisions based upon the persuasion of the subordinates. In this scenario, the employees convince the manager of the decision’s benefits, and the manager ultimately makes the decision based on the team’s opinion. This style of management allows the managers to have an amazing input from the others as well as experts while still making the final decision themselves.
The persuasive management, however, has been proven to not work when the team members do not respect the leader or their choices, so they choose not to provide input in the final decision.
Business Management Tools
Whether you are running a large company, a small firm, or several businesses, the chances that you are always going to have a lot to do are pretty high. It can be really challenging to handle too many things at the same time, and luckily there are solutions available.
Do not let your work be chaotic, and take advantage of the possibilities of the era you live in.
It will not be wrong to say that business management tools have come a long way, and today, they are better and more advanced than ever.
What Are Business Management Tools?
A business management tool is a software that improves the business, effectively automate the business processes, and supports the business overall.
By using such a set of programs, the business people are less likely to do mistakes, forget important tasks, and fail to do complete projects on time.
All in all, business management tools are designed to meet the requirements of the processes in business in the most efficient manner.
How to Choose the Right Business Management Tool?
While choosing a management tool you are going to apply in your business, there are a number of factors that need to be considered. Among these factors, there are the tasks that need to be automated, the processes, needs, and size of the business.
Besides these circumstances, make sure the business management software you are considering also has the following features:
- A Capability of Time Tracking
- Task and Project Management
- Invoice Management
- Budget Management
- Document Sharing and File Storage
- Management of Resources
List of Top Business Management Tools
Everything you need in order to run your business on an operating system, Zoho has. Zoho One is a wholesome software for the business management that has an impressive number of 40 business apps. All you need to do is connect to multiple apps. By doing this you will allow different times to work together productively.
Zoho’s top features are:
- Management of almost every business aspect in a single system
- Automation of the personalized workflows of business
- The ability for online sharing of documents as well as documentation storage
Zoho One should be your go-to choice if you want to step up your company’s productivity, boost sales, and accurately manage everyday activities.
ProofHub is one of the most powerful business management tools that currently exist in the industry. The software is the most feature-rich tool that integrates an amazing collaboration, task management, and communication.
ProofHub features everything you might need in order to take proper care for your business. By using this software, you can store and share files, streamline the business processes, and share feedback. ProofHub also has its own mobile app available for both, Android and iOS users.
ProofHub’s Top Features are:
- Efficient task and project management
- Ability to track time spent on specific tasks
- Gantt charts that keep track of the projects
- Dynamic reports for clear insights
The prices start at $89 per month, and currently, this is a limited time offer. The software also offers a free trial.
For the majority of business management tools users, Bitrix seems to be a simple CRM. However, it is not. Although this may sound like a bad feature, it is surely one of the most advantageous characteristics of Bitrix24.
This management software offers collaboration and communication tools, as well as a complete suite of management.
Bitrix24’s top features are:
- Allows easy, fast, and efficient collaboration
Consists of custom document approval workflows and has a multi-user editing
- Allows instant share of ideas, feedback, engagement, and creation of workgroups
- It has a sales team management that provides making more sales
- The software works on Android, iPhone, and iPad
One of the best things about this management software is that it is free! For those who are just starting out, it is free and a total of 12 users can be included.
The prices for the companies start at $69 per month.
Led by the slogan “Bring structure to your work”, Scoro is an all-in-one business management tool. The software is designed to bring the teams, reports, sales, and projects together in one place.
With this business management tool, you can get every aspect of your business in a more organized level.
Scoro’s top features are:
- Ability to manage contacts, quotes, and invoices seamlessly
- Ability to track and plan work
- Unlimited number of project that can be run
- Effective management of the entire business
- Accurate tracking of bills and time for the completed work
The prices for using this management software depend on the number of people in the team that is going to be managed.
Therefore the prices start at $26 per user. This plan includes a minimum of five users and includes management of tasks, projects, bills, invoices, receipts, as well as a time tracker.
The pricing of the plans dedicated to larger businesses start at $37 per user and includes way more features.
Scoro also allows a free 14-day trial without requesting to enter a credit card.
As a useful software for business management, StudioCloud has made a name for itself as a tool that does the work in much less time than the other management tools.
The users of StudioCloud are able to manage their business at any given time and place. The software simplifies the business processes and helps establish an amazing organization within the company.
StudioCloud’s top features are:
- Ability to create and send professional invoices
- Management of partners, vendors, and clients at one place
- The ability of the clients to review and sign the contracts online
- Automatic sending of personalized emails and text
- Easy customization of the feel and the look of the software
Identical to Bitrix24, StudioCloud also offers free access for the beginners.
The rest of the prices start at $35 per month.
Besides all of these business management tools, there are plenty of more centered software programs that put a focus on specific parts of the management.
Although business management is not what it used to be, it still remains the most important part of any business. Without it, perfect communication, workflow, and success of the business would not be possible.
The business management can be considered a fluid category as it is changing every day due to the integration of big data and artificial intelligence. However, the basics that make business management what it is, stay the same.
The general concept of management is easy to understand but difficult to define in ways that are universal and acceptable. But, at the end of the day, I believe this guide helped to grasp the idea of management and understand how important it actually is in the business world.
The key to achieving success is to assemble a stable and strong managing team that first of all, you will be able to efficiently manage.
“Management is doing things right, leadership is doing the right things” Peter Drucker.
Therefore, motivate your employees, plan the worst but expect the worst. Understand that without good management, you have no chance of achieving your goals.
Keep your head high, listen to your team, and keep on organizing!